Suppose Lin Ltd.'s 2017 financial statements contain the following selected data (in millions).

Instructions
(a) Compute the following values and provide a brief interpretation of each.
(1) Working capital. (3) Debt to assets ratio.
(2) Current ratio. (4) Times interest earned.
(b) Suppose the notes to Lin's fi nancial statements show that subsequent to 2017, the company will have future minimum lease payments under operating leases of NT$10,717.5 million. If these assets had been purchased with debt, assets and liabilities would rise by approximately NT$8,800 million. Recompute the debt to assets ratio after adjusting for this. Discuss your result.

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Current assets Total assets Current liabilities Total liabilities NT$ 3,416.3 30,224.9 2,988.7 16,191.0 Interest expense Income taxes Net income NT$ 473.2 1,936.0 4,551.0